Oil prices slide amid glut concerns, U.S. withdrawal from climate deal

By Jane Chung | SEOUL Oil prices dropped on Friday amid worries that U.S. President Donald Trump’s decision to abandon a global climate pact could spark more crude drilling in the United States, stoking a persistent glut in global supply. Global benchmark Brent crude futures LCOc1 were down 23 cents, or 0.45 percent, at $50.4 a barrel by 0316 GMT. U.S. West Texas Intermediate crude CLc1 futures dropped 26 cents, or 0.54 percent, to $48.1 per barrel. Commodity markets were absorbing news the United States would withdraw from the landmark 2015 global agreement to fight climate change, a move that fulfilled a major campaign pledge but drew condemnation from U.S. allies. “This could lead to a drilling free for all in the U.S. and also see other signatories waver in their commitments,” said Jeffrey Halley, a senior market analyst at OANDA. “This outcome could increase the supply-side equation from the United States and complicate OPEC’s forward projections. A scenario that would not be favorable to oil prices.” Surging U.S. production has put a strain on OPEC members’ efforts to curb production to drain a global crude supply overhang and to prop up prices. A week ago, the Organization of the

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Source: CTRM Center

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